Value Added Cost

Business, Legal & Accounting Glossary

Definition: Value Added Cost

Value Added Cost

Full Definition of Value Added Cost

When an asset is consumed in order to increase the value of goods or services to the consumer, a value added cost is incurred. The direct materials, direct labour, and installation costs associated with a sale are examples of value added costs. These costs are typically a small portion of a company’s total costs, leaving a significant opportunity to eliminate non-value-added costs, increasing profits or allowing for price reductions.

Cite Term

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Page URL
Modern Language Association (MLA):
Value Added Cost. Payroll & Accounting Heaven Ltd.
June 27, 2022
Chicago Manual of Style (CMS):
Value Added Cost. Payroll & Accounting Heaven Ltd. (accessed: June 27, 2022).
American Psychological Association (APA):
Value Added Cost. Retrieved June 27, 2022
, from website:

Definition Sources

Definitions for Value Added Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th April, 2022 | 4 Views.